Telstra Corporation Ltd
OTC:TTRAF
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Thermax Limited
NSE:THERMAX
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IN |
EV/EBIT
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Valuation Scenarios
If EV/EBIT returns to its 3-Year Average (18.6), the stock would be worth $3.36 (7% downside from current price).
| Scenario | EV/EBIT Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 20.1 | $3.63 |
0%
|
| 3-Year Average | 18.6 | $3.36 |
-7%
|
| 5-Year Average | 22 | $3.97 |
+9%
|
| Industry Average | 30.6 | $5.51 |
+52%
|
| Country Average | 16.8 | $3.03 |
-17%
|
Forward EV/EBIT
Today’s price vs future ebit
| Today's Enterprise Value | EBIT | Forward EV/EBIT | ||
|---|---|---|---|---|
|
$72B
|
/ |
Jan 2026
AU$3.7B
|
= |
|
|
$72B
|
/ |
Jun 2026
AU$4.2B
|
= |
|
|
$72B
|
/ |
Jun 2027
AU$4.3B
|
= |
|
|
$72B
|
/ |
Jun 2028
AU$4.5B
|
= |
|
Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.
Peer Comparison
| Market Cap | EV/EBIT | P/E | ||||
|---|---|---|---|---|---|---|
| AU |
|
Telstra Corporation Ltd
OTC:TTRAF
|
60B USD | 20.1 | 26.5 | |
| US |
|
Verizon Communications Inc
NYSE:VZ
|
193.9B USD | 9.7 | 11.3 | |
| US |
|
AT&T Inc
NYSE:T
|
182.8B USD | 11.6 | 8.4 | |
| DE |
|
Deutsche Telekom AG
XETRA:DTE
|
132.7B EUR | 9.3 | 13.8 | |
| CN |
|
China Telecom Corp Ltd
SSE:601728
|
549B CNY | 12.1 | 16.6 | |
| JP |
|
Nippon Telegraph and Telephone Corp
TSE:9432
|
12.5T JPY | 10.2 | 11.6 | |
| SG |
|
Singapore Telecommunications Ltd
SGX:Z74
|
80.3B SGD | 60.1 | 13 | |
| FR |
|
Orange SA
PAR:ORA
|
46B EUR | 17 | 85.5 | |
| SA |
|
Saudi Telecom Company SJSC
SAU:7010
|
189.1B SAR | 12.9 | 12.8 | |
| CH |
|
Swisscom AG
SIX:SCMN
|
34.1B CHF | 24.3 | 27.2 | |
| AU |
T
|
Telstra Group Ltd
F:5KB
|
37B EUR | 20.6 | 27.2 |
Market Distribution
| Min | 0 |
| 30th Percentile | 10.7 |
| Median | 16.8 |
| 70th Percentile | 24.5 |
| Max | 6 797.5 |
Other Multiples
Telstra Corporation Ltd
Glance View
Telstra Corporation Ltd., Australia's telecommunications titan, has long been a linchpin in the nation's communication fabric, weaving a narrative of innovation and resilience. Born from the governmental embrace as the Postmaster-General's Department, Telstra morphed through the ages into a privatized powerhouse driving Australia's digital landscape. The company caters to millions with its comprehensive suite of services, spanning mobile and fixed broadband, telephony, and pay television, effectively making it Australia's largest provider. With its ever-expanding 5G network aiming to cover 95% of the population, Telstra harnesses technology's leaps to maintain its competitive edge, ensuring seamless connectivity for businesses and consumers across the island continent. At the heart of Telstra’s revenue engine lies a robust strategy focused on leveraging its vast infrastructure and service breadth. The bulk of its profits flows from its mobile network services, where it commands a sizable market share. Its consumer and enterprise-oriented divisions offer a broad spectrum of telecommunication services, while the international business arm extends its reach beyond Australian shores, focusing on global connectivity. Moreover, Telstra pursues growth through strategic partnerships and digital transformation initiatives, like enhancing its IT services and venturing into innovative tech domains, including cloud services and the Internet of Things (IoT). The company’s narrative is one of adaptation and forward-thinking, consistently recalibrating its course to address evolving technological landscapes and consumer demands.